Musk announces new Tesla factory will be in Germany

[SAN FRANCISCO] A new Tesla auto factory for the European market will be based in Germany, chief executive Elon Musk said on Tuesday.

Mr Musk said during a ceremony at Germany's Golden Steering Wheel awards that the new "Gigafactory" would be "in the Berlin area."

He said the company planned the facility "near the new airport" in Berlin and that Tesla would also set up a design center in the area.

"Everyone knows that German engineering is outstanding and that's part of the reason we are locating our Gigafactory Europe in Germany," he said on-stage.

"We are also going to create an engineering and design center in Berlin because I think Berlin has some of the best art in the world."

The news highlights a further global expansion for the electric automaker, which last month said its factory in China had started production.

Mr Musk offered few details, but reports have said the company hopes to begin European production by 2021.

Tesla is estimated to have some 30 per cent of the European market for battery-powered cars.

AFP